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Robust Storage Assignment In Unit-Load Warehouses, Marcus Ang, Yun Fong Lim, Melvyn Sim
Robust Storage Assignment In Unit-Load Warehouses, Marcus Ang, Yun Fong Lim, Melvyn Sim
Research Collection Lee Kong Chian School Of Business
Assigning products to and retrieving them from proper storage locations are crucial in minimizing the operating cost of a unit-load warehouse. The problem becomes intractable when the warehouse faces variable supply and uncertain demand in a multi-period setting. We assume a factor-based demand model in which demand for each product in each period is affinely dependent on some uncertain factors. The distributions of these factors are only partially characterized. We introduce a robust optimization model that minimizes the worst-case expected total travel in the warehouse with distributional ambiguity of demand. Under a linear decision rule, we obtain a storage and …
The Newsvendor's Optimal Incentive Contracts For Multiple Advertisers, Zhengping Wu, Pascale Crama, Wanshan Zhu
The Newsvendor's Optimal Incentive Contracts For Multiple Advertisers, Zhengping Wu, Pascale Crama, Wanshan Zhu
Research Collection Lee Kong Chian School Of Business
We consider a newsvendor who earns a revenue from the sales of her product to end users as well as from multiple advertisers paying to obtain access to those end users. We study the optimal decisions of a price-taking and a price-setting newsvendor when the advertisers have private information about their willingness to pay. We focus on the impact of the number of advertisers on the newsvendor’s optimal decisions. We find that regardless of the number of advertisers, the newsvendor may exclude advertisers with a low willingness to pay and distort the price and inventory from their system-efficient levels to …